If the price of a soda was 15 cents in 1970, when the CPI was 50, and 50 cents in 2007 when the CPI was 172, then the real price of
A) a soda has risen 567 percent.
B) a soda has risen 350 percent.
C) the 1970 soda in 2007 dollars is 52 cents.
D) the 2007 soda in 1970 dollars is $3.44.
E) the soda was 15 cents in 1970 and 50 cents in 2007.
C
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Disposable income represents ________
A) the income received by firms, e.g. corporations B) an increase in GDP C) a decrease in GDP D) the after-tax income received by the household
If consumers expect that the price of pretzels will decrease next week, what would happen today?
A) Demand today for pretzels would decrease. B) Demand today for pretzels would increase. C) Demand today for pretzels would be unaffected. D) Supply today of pretzels would decrease.
For an imaginary economy, the value of the consumer price index was 138.75 in 2016, and the inflation rate was 10 percent between 2015 and 2016 . The consumer price index in 2015 was
a. 126.1. b. 128.8. c. 148.8. d. 152.6.
The liquidity effect is the
A) decrease in the interest rate due to an increase in the supply of loanable funds. B) increase in the interest rate due to an increase in national income. C) increase in the interest rate due to a higher expected inflation rate. D) increase in the interest rate due to an increase in the price level.